Telstra boss Sol Trujillo joins Lateline Business

It has been three-and-a-half years since Sol Trujillo took the top job at Telstra, and in that time he has transformed the company from a strict telephony business into something else. He joins Lateline Business to discuss the company and his future plans as its driver.

Transcript

ALI MOORE, PRESENTER: Well, how to fix the financial crisis was the question of the moment at this year's World Economic Forum in Davos, which wrapped up over the weekend without reaching any consensus about a solution.

Among the Australian contingent at the Swiss ski resort was Telstra boss Sol Trujillo, it's been 3.5 years since the American assumed the driver seat at the company, and while he's transformed Telstra, he's giving little away about whether his time at the Telco is up.

Europe correspondent Emma Alberici talked with Sol Trujillo in Davos.

SOL TRUJILLO, CEO TELSTRA: Well it's been a bit depressing, probably more so than anyone that I have been at. You know most of the Davos sessions in the past have always been about global conflicts that are appearing in certain parts of the world.

This one, this whole economic malaise is pervasive. You look at China, you look at India, you look at Russia, the brick countries that everybody was a year ago talking about how much unlimited growth there was going to be. Well, reality is bit, every country everywhere.

EMMA ALBERICI, REPORTER: What's the most inspiring proposed solution to this crisis that you have heard in the sessions you've been attending?

SOL TRUJILLO, CEO TELSTRA: You know, I think Jean Claude Trichet who heads up the Euro issues relative to the financial community, he's pretty clear this morning in one of the publications about what everybody needs to do and stop requiring more reserves, requirements for banks.

They've got plenty. What they need to do is make it go to work so that small businesses and people can get loans and do all that sort of thing. Well there's a reality now, okay enough is enough. Let's get on with what we need to do to fix things.

EMMA ALBERICI, REPORTER: What is Telstra's experience been like?

SOL TRUJILLO, CEO TELSTRA: The good news for Telstra is we have gone through a transformation, we are generating free cash. So we don't have to go to the financial markets to get funding.

I use the word have to, but we do go occasionally for different purposes and we found that the markets have been very tight, even for a high rated cash flow generating kind of business like ours, and the cost of finance has gone up.

EMMA ALBERICI, REPORTER: You've been involved in climate change discussions here at the forum. What role does a telephone company have in trying to fix global warming?

SOL TRUJILLO, CEO TELSTRA: I am not a climate change expert and I will never pretend to be. But as a business person, I look at the environment that we are operate in, the environment that our employees and our customers live in.

We do have a responsibility to play a role in trying to affect change. In terms of what I call the real issue, which is about carbon emissions.

EMMA ALBERICI, REPORTER: Losing the broadband tender hasn't made you any less motivated?

SOL TRUJILLO, CEO TELSTRA: No, I mean, our strategy is still the same, it's our transformation. You know, the Government needs to sort through whatever they need to sort through.

EMMA ALBERICI, REPORTER: Did one of your amigos, Greg Winn get less motivated, is that why he left?

SOL TRUJILLO, CEO TELSTRA: No, actually, in Greg's case, Greg is a good friend of mine, I mean we have worked together for many years. I convinced him to sign up for a two year deal to come to Australia. And, you know, it's now 3.5 years later.

There's a point in time where, you know, people go back to their families, go back, you know, to their lives, 'cause all of us have tradeoffs whenever we move.

EMMA ALBERICI, REPORTER: When will it be time to go back to your roots? You have been all over the world for a very long time.

SOL TRUJILLO, CEO TELSTRA: Yeah, well, you know, I came to Australia at the request of the board to transform a company. We have transformed it a whole lot. But my view is it's never done but at some point in time I will leave, right, it's been speculated on, I think I arrived in July of 05, and I think starting in November of 05 people were speculating that, you know Sol was going to leave, well Sol will leave, and somebody's going to be right.